Organo (6368) Q2 2027 earnings summary

Executive summary

• H1 orders rose 70.8% YoY to ¥171,268 million, with backlog up 41.7% to ¥175,787 million, driven by large semiconductor and overseas electronics projects.

• Net sales increased 14.3% to ¥94,644 million, while operating profit declined 12.3% to ¥15,237 million as prior-year high-margin projects rolled off and costs rose.

• FY2027 forecasts were maintained; higher H2 sales and operating profit are expected as project progress and margins improve.

Financial highlights

• H1 net sales of ¥94,644 million were up ¥11,851 million YoY and 5.2% above the ¥90,000 million initial plan.

• Operating profit was ¥15,237 million, down ¥2,141 million YoY and 12.9% below plan; operating margin was 16.1% versus 21.0% a year earlier.

• Ordinary profit declined 10.3% to ¥15,557 million and parent-attributable profit fell 13.0% to ¥10,030 million.

• Gross profit was ¥29,808 million versus ¥30,125 million; comprehensive income fell 6.4% to ¥10,935 million.

• Orders received of ¥171,268 million were 31.7% above the ¥130,000 million initial plan; orders represented 57% of the full-year forecast.

Outlook and guidance

• FY ending March 2027 forecasts remain unchanged: orders ¥300,000 million, sales ¥200,000 million, operating and ordinary profit ¥40,000 million each, and parent-attributable profit ¥30,000 million.

• H2 expectations are orders of ¥128.7 billion, sales of ¥105.3 billion and operating profit of ¥24.7 billion at a 23.5% margin.

• Much of the exceptionally strong order intake is expected to generate sales from next FY onward; elevated orders reflect overseas electronics investment, expanded U.S. project scope and some orders brought forward.

• Advanced semiconductor and other investment plans are expected to remain high in the next fiscal year and beyond, subject to market conditions.

• Full-year operating margin is planned at 20.0%, versus 21.2% in FY ended March 2026.